Iceland Observer: Easter Storms, and Markets Under Pressure

MarketVector™ Iceland Global Index (MVISLG) Returns:

1W: 1.41% 1M: (3.93)% 1Y: 20.43% Inception 12/31/20: 35.34%

Corporate & Market News

Alvotech Posts Strong 2025, New CEO Now In Seat

Alvotech closed out 2025 with revenues of $593 million, up 21% year over year, and reaffirmed 2026 guidance of $650 to $700 million. Founder Róbert Wessman has moved into an Executive Chairman role while Lisa Graver takes over as CEO, having relocated her professional base to Iceland. The stock sits around $3.14, weighed down by FDA inspection fallout with resubmissions targeted for Q2.

Icelandair Takes a Double Hit as Storm Season Drags On

Icelandair had to rebook 3,600 passengers after a March 26 storm wiped out 11 departures, then got hit again with a second bigger storm that canceled 130 flights right before Easter. The demand story is still good and they have 13 new Airbus A321XLRs on order, but two major disruptions in two weeks is rough timing going into peak travel season.

ICEX Down Over Six Percent on the Month

The ICEX rose 1.56% to 2,046 on April 1, but is down 6.55% over the past month and off 3.12% year over year. Dual listed names with US exposure have absorbed the worst of it as global tariff uncertainty continues to weigh on sentiment.

Economic Indicators

Eclipse Bookings Surge but Price Gouging Risks the Upside

Hotels around the August 12 total solar eclipse are already largely sold out and prices are climbing sharply across accommodation and services. A former chair of the Icelandic Tourism Association warned that price gouging risks deterring visitors not just for the eclipse but for future trips. For tourism dependent stocks, the eclipse is a meaningful near term revenue catalyst — how operators handle pricing will determine whether it converts into lasting demand.

Foreign Tenants Paying 14 Percent More for Smaller Apartments

A new government housing report found that foreign workers in Iceland are paying 14% more in rent than locals, despite living in smaller places. It is a sign of just how tight the housing market has gotten, and that has knock on effects for wages and competitiveness for any company trying to hire and retain people in Iceland right now.

Policy & Central Bank

Chinese Infrastructure Exposure Comes Under Scrutiny

Iceland's bus operator Strætó opened a security review on its 15 Chinese made Yutong electric buses after parliament raised concerns about the manufacturer's potential remote access to the vehicles. It is a small story in isolation but part of a much bigger conversation happening across the Nordics about how exposed public infrastructure is to Chinese hardware.